A competitive market is one in which a large numbers of producers compete with each other to satisfy the wants and needs of a large number of consumers. In a competitive market no single producer, or group of producers, and no single consumer, or group of consumers, can dictate how the market operates. competitive market is one in which a large numbers of producers compete with each other to satisfy the wants and needs of a large number of consumers. In a competitive market no single producer, or group of producers, and no single consumer, or group of consumers, can dictate how the market operates.
Only when the annuitant begins to withdraw money from the annuity, he has to pay tax on his gains. Annuitiy holders must be advised of the risks of deferred income taxes when they agree to accept an annuity contract. In the event of the death of the annuitant, the beneficiary is subject to tax.
Later, because of a cost-of-living increase, his annuity payment was increased to $166 per month, or $1,992 a year (12 Ã $166). The tax-free part is still only 22.5% of the annuity payments as of the annuity starting date (22.5% Ã $147 Ã 12 = $396.90 for a full year). The increase of $228 ($1,992 â $1,764 (12 Ã $147)) is fully taxable.